New College of Florida seeks Board approval for $47 million USF takeover debt

New College of Florida residents and stakeholders now have a clearer picture of how the institution plans to finance its $47 million takeover of the University of South Florida Sarasota-Manatee campus. The college’s Finance and Administration committee voted unanimously on Friday to authorize a complex borrowing arrangement that combines a primary bank loan with a secondary private investment.

The college faces strict State University System rules regarding debt repayment. Typically, institutions cannot take on subordinate liens, which are secondary loans paid after the primary debt and usually carry higher interest rates. To meet the financial requirements for the campus acquisition, New College secured a $40 million loan from BankUnited. An unnamed accredited investor will provide the remaining $7.5 million through this secondary structure. The college stated in financial documents that the investor was selected through a competitive process, though no further details about the entity were released.

Christie Fitz-Patrick, Vice President of Finance and Administration, clarified that the Friday vote is an initial step rather than the final approval. She told the committee that they are requesting permission to proceed with the borrowing and to work with BankUnited on loan agreements. After those agreements are finalized, the loan will return to the board for a final approval vote before the funds are disbursed.

The measure passed the Finance and Administration committee without dissent. The next scheduled step is a vote by the Board of Governors on November 3. If approved, the college will move forward with closing the loan to complete the financial side of the campus takeover.